DPIIT Releases Operational Guidelines for BHAVYA Scheme to Develop 100 Industrial Parks

In a major push toward strengthening India’s manufacturing ecosystem and positioning the country as a globally competitive industrial destination, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, has released the detailed operational guidelines for the implementation of the BHAVYA Scheme. The landmark Central Sector Scheme is aimed at developing investment-ready, globally benchmarked industrial parks across the country over the next six years.

The launch of the guidelines marks a significant step toward operationalising one of India’s most ambitious industrial infrastructure programmes, designed to support large-scale manufacturing, attract global investment, strengthen supply chains, and generate employment opportunities across sectors.

The BHAVYA Scheme has been conceptualised in alignment with flagship national initiatives such as Make in India and PM Gati Shakti, while also supporting the broader vision of transforming India into a global manufacturing and export hub. Officials stated that the scheme is intended to create integrated industrial ecosystems capable of meeting international standards in infrastructure, logistics, sustainability, governance, and ease of doing business.

Under the scheme, the Government plans to develop 100 industrial parks between 2026-27 and 2031-32 with an estimated total financial outlay of nearly ₹33,660 crore. In the first phase, up to 50 industrial parks will be selected through a challenge-based competitive framework designed to encourage quality infrastructure development and efficient industrial planning.

The newly released guidelines provide a detailed framework covering eligibility conditions, project selection procedures, funding patterns, governance mechanisms, implementation structures, monitoring systems, and operational responsibilities for the industrial parks developed under the scheme.

One of the central objectives of BHAVYA is the creation of “investment-ready” industrial ecosystems equipped with advanced plug-and-play infrastructure that enables industries to begin operations with minimal delays. The scheme seeks to provide integrated facilities including multimodal logistics connectivity, uninterrupted utility services, digital governance platforms, worker support infrastructure, sustainable development systems, and modern industrial services.

According to the guidelines, both greenfield and eligible brownfield industrial parks will be supported under the programme. Minimum land requirements have been prescribed at 100 acres for non-hilly states, while a lower threshold of 25 acres has been kept for hilly states, northeastern states, Union Territories, and smaller states to ensure broader regional participation and balanced industrial development. The framework also allows consideration of large industrial parks extending up to 1000 acres.

The challenge-based selection model forms a key feature of the scheme. Industrial park proposals submitted by states and implementing agencies will be evaluated using objective and transparent criteria. Key evaluation parameters include multimodal connectivity, land suitability, quality of core infrastructure, industrial ecosystem readiness, investor facilitation mechanisms, digital governance systems, sustainability standards, and long-term operational viability.

Special emphasis has been placed on modern infrastructure systems and sustainable industrial development. The guidelines encourage development of underground utility systems, advanced water supply and waste management infrastructure, common effluent treatment plants, renewable energy facilities, testing laboratories, worker housing, integrated logistics systems, and digital single-window clearance mechanisms.

The framework also stresses the importance of skill development and workforce support infrastructure. Industrial parks developed under BHAVYA are expected to integrate skilling facilities and worker-centric amenities that improve labour productivity, support industrial efficiency, and enhance the overall investment environment.

To ensure professional management and accountability, implementation of projects under the scheme will be carried out through Special Purpose Vehicles (SPVs) incorporated under the Companies Act, 2013. These SPVs will be responsible for project planning, infrastructure development, investor facilitation, operations, maintenance, and long-term management of industrial assets created under the programme.

Financial assistance under the BHAVYA Scheme will be provided in the form of equity contribution linked to the value of land transferred to the SPV and the achievement of predefined project milestones. This structure is intended to ensure accountability, encourage timely implementation, and align financial support with project progress.

The National Industrial Corridor Development Corporation (NICDC) has been designated as the Project Management Agency (PMA) responsible for implementation support, monitoring, and coordination under the scheme. NICDC’s involvement is expected to bring expertise from India’s industrial corridor programmes and integrated infrastructure projects into the execution of BHAVYA.

The guidelines also provide a structured framework for participation by private developers through project-specific SPVs. This public-private partnership approach aims to leverage private sector expertise, investment capacity, and innovation while maintaining transparency, accountability, and strong governance safeguards.

To strengthen monitoring and transparency, the scheme incorporates GIS-based project monitoring systems, periodic progress reviews, audit mechanisms, and oversight by a National Level Steering Committee chaired by the Secretary, DPIIT. The use of digital monitoring tools is expected to improve project tracking, transparency, and implementation efficiency.

Another important aspect of the scheme is convergence with other Central and State Government initiatives related to logistics, skilling, renewable energy, sustainability, industrial infrastructure, and urban development. Officials believe this integrated approach will help create comprehensive industrial ecosystems rather than standalone industrial estates.

Industry experts view the BHAVYA Scheme as a major step toward addressing one of the key requirements for India’s manufacturing ambitions — the availability of high-quality industrial infrastructure with global standards of connectivity, utilities, and investor facilitation.

The scheme is also expected to support India’s integration into global value chains at a time when multinational companies are diversifying supply chains and seeking reliable manufacturing destinations. Improved industrial infrastructure could significantly boost sectors such as electronics, automobiles, pharmaceuticals, renewable energy equipment, textiles, semiconductors, defence manufacturing, and logistics.

Analysts believe that the successful implementation of BHAVYA could accelerate industrialisation across states, attract both domestic and foreign investment, create large-scale employment opportunities, and strengthen India’s competitiveness in international manufacturing markets.

With the release of the operational guidelines, the Government has formally initiated the implementation phase of the BHAVYA Scheme, signalling a strong policy push toward next-generation industrial infrastructure capable of supporting India’s long-term economic growth and manufacturing transformation.